Early this morning, Congressional leaders announced that an agreement had been reached to pass a $1.15 trillion deal on spending and tax legislation that would avoid a government shutdown and fund the federal government in fiscal 2016.
Policy and Taxation Group would like to highlight that this legislation contains a series of tax extenders which includes a provision to the federal gift tax. Once this legislation is enacted, the gift tax will not apply to contributions to certain exempt organizations. The provision treats transfers to 501(c)4, (c)5, and (c)6 organizations of the tax code as exempt from the gift tax. The provision will apply to transfers made after the date of enactment.
The House will vote to pass this legislation on Thursday before it moves to the Senate where it is expected to clear this Friday, avoiding a government shutdown.
PATG will continue to monitor this legislation and inform you of any important updates.